Owner of Local Cable Service Company Indicted for Fraud
Las Vegas, Nev. - The owner of a local cable service company has been indicted in the United States District Court in Las Vegas for a fraud scheme in which he provided cable television services to local hotels at residential rates, announced Daniel G. Bogden, United States Attorney for the District of Nevada. PAUL WINQUIST, age 59, of Las Vegas, owner/operator of Commercial Satellite Systems (CSS), is charged with nine felony counts of Mail Fraud, and is facing up to 20 years imprisonment and a $250,000 fine on each count, if convicted.
The Indictment alleges that the object of WINQUIST's scheme was to defraud a cable service provider named DISN Network/Signal Integrity (DISN), which provides cable television services such as HBO to residences and hotels, of the full value of its services by causing residential cable services to be used in hotels. The cost of cable service for hotel customers is substantially more than the cost of the services for residential customers. WINQUIST allegedly obtained residential cable accounts with DISN, in his name and in the names of others, and caused the services to be diverted to hotels. The defendant knew that the DISN residential cable services were not intended for use in hotels at the residential prices. WINQUIST paid for the cable services used in the hotels at the residential rates in the form of check sent by mail to DISN.
A Summons was issued for MR. WINQUIST to appear in court on January 23, 2004, for an Initial Appearance and Arraignment before United States Magistrate Judge Peggy Leen.
This case is being investigated by Special Agents with the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Brian Pugh.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.